Auto

China to Become The World’s Biggest Car Exporter Beating Japan: Forecast

China is expected to become the world’s top car exporter for the past year, surpassing Japan, thanks to the large demand in Russia and a growing global interest in electric vehicles (EV), according to a forecast by a major industry group.

According to the China Passenger Car Association (CPCA), the country exported vehicles worth $102 billion, witnessing a massive increase of 56% in the export of vehicles in 2023 compared to 2022. CPCA predicts the total number of exported vehicles, including passenger cars, buses, and trucks, to be 5.26 million.

Furthermore, as per CPCA’s estimates, Japan exported 4.3 million cars during the same period. In a statement earlier this week, the association said, “It is a certainty that China has become the world’s largest exporter.”

It credited China’s leading electric vehicle (EV) industry, enhanced quality of domestically produced cars, and the domestic automakers’ drive to achieve better profitability abroad while offsetting cost pressures domestically for its emergence as a major player in the automotive industry.

As per the customs data from the last month, China exported a total of 4.76 million cars in the first 11 months of 2023. On the other hand, the Japan Automobile Manufacturers Association revealed that Japan’s car exports reached 3.99 million units during the same period.

China and Japan’s official annual figures, expected to be released in the next few weeks, are set to confirm the ranking.

Moreover, according to the latest Chinese customs data, China’s vehicle shipments to Russia increased by 545% to reach 840,000 units in the first 11 months of the previous year, making it the fastest-growing market.

Following Russia’s invasion of Ukraine, hundreds of brands left the Russian market. This provided Chinese carmakers with the perfect opportunity to increase their sales.

The affordable Chinese EVs contributed massively to the country’s passenger car exports rising by 62% in 2023 compared to 2022. The CPCA revealed that over a quarter of these exports were electric vehicles.

The overall export of EVs, which includes battery electric vehicles, plug-in hybrids, and hydrogen fuel cell vehicles, increased by 70%. In December, BYD shipped 36,095 vehicles from China, leaving behind SAIC (19,427 units) and Tesla with 18,334 units.

Share
Published by
Arsalan Khattak